As the saying goes, knowledge is power. When preparing to sell your home in any market, being well-informed is essential. Here’s some useful information about your heating oil tank, which may still be underground.
Some local governments in New York have specific rules regarding USTs. For example, certain towns or counties might require tanks to be removed, upgraded, or properly decommissioned if they are no longer in use.
Disclosure Requirements
Seller’s Responsibility: In New York, you are legally obligated to disclose the presence of an underground storage tank as part of the seller’s property condition disclosure statement.
Environmental Concerns: If the tank has leaked or there is evidence of contamination, it must be disclosed to prospective buyers, as it could have significant environmental and financial implications.
Inspection and Testing of Heating Oil Tanks
It’s common for buyers to request a tank inspection or testing to ensure there are no leaks. A professional environmental consultant or oil tank inspection service can handle this.
Decommissioning and Removal
If you choose to remove the tank, or if it’s required by local regulations or the buyer’s lender, the process typically involves:
Pumping out any remaining oil.
Excavating and removing the tank.
Testing the soil for contamination.
Remediating contamination if necessary.
If the tank is not being removed, it must be properly decommissioned (e.g., cleaned, filled with an inert substance, and left in place).
Lender and Insurance Considerations
Mortgage lenders and insurance companies may have policies that require the removal or certification of the tank’s safety before a transaction can proceed.
Penalties for Non-Compliance
If a leaking tank is discovered and not properly addressed, homeowners can face fines and liability for environmental cleanup costs.
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